Residents in the UAE who do not submit their Emirates ID to banks, in order to update their records, will risk the suspension of their debit and credit cards, according to Al Etihad Credit Bureau.
The federal organisation urged bank and finance companies to ensure customers hand in the identity documents by February 28, 2019 to avoid consequences. The ruling only applies to customers who have not updated their records.
“It should be stated in media campaigns that the failure of doing so would result in not being able to use ATM cards to withdraw funds or conduct direct debit transactions as well as stopping credit card transactions after February 28,” said a central bank circular issued earlier this month.
However, the temporary suspension of ATM cards would not prevent customers from withdrawing cash from their account directly at a bank counter.
Al Etihad Credit Bureau said it only has Emirates ID information for 85% of 4.5 million borrowers in its database, despite banks in the UAE requiring identity documents from customers for loan or credit card issuances.
“There is another 15%, which the banks have actively tried to approach, but they are not always successful because customers do not share it as they should,” said Marwan Lutfi, CEO of AECB.
He added that it is the individual’s duty, and not the bank’s, to make sure their information is up to date.
“Over the past few years, there has been a constant effort by all the banks in the community but now a time limit has been set. If customers fail to meet the February 28 deadline, banks will suspend debit and credit cards,” he said.
Customers who miss the deadline by three months will have their cards suspended indefinitely, however, they will not be charged any fees for temporary suspensions of ATM and credit cards.
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